We see a gap in lending and microenterprise support for BIPOC businesses in Chittenden County, Vermont, where eight percent of residents are considered to be New Americans.

In the spring of 2020, amid the storm of the coronavirus pandemic, the subsequent economic fallout, and the social unrest in reaction to George Floyd’s death, Mascoma Bank dove deep into the question of how we can truly have an impact on the issues of inequity prevalent in the United States. As part of Mascoma’s commitment to diversity, equity, and inclusion, we began to hone in on ways the Bank could use philanthropy to address these inequities in our communities. We wanted to make a sustained commitment to an area where our expertise and financial resources could lay the foundation for change.

As we discussed ideas that connect to the Bank’s expertise and interest in fostering local economic development, the role of microenterprises rose to the top. Creating successful businesses lifts the economic vitality of a region. These businesses provide livable wages to their owners, who often are from underrepresented groups. In turn, those wages help ensure people can access proper health care, obtain housing, pursue education, patronize the arts, and more. But small businesses cannot thrive without capital and, as a bank, we knew there must be a way for our knowledge and resources to help.

The Bank focused its attention on the Old North End in Burlington, Vermont, which has become an increasingly diverse part of the state. It has a vibrant immigrant community with great capacity for growth, yet potential entrepreneurs needed coaching and support to begin to understand how they could best access capital to start and fund their businesses.

We have identified some key gaps in the microenterprise ecosystem that the Bank can help fill. As a first step toward a solution, in December 2020, Mascoma Bank committed funds for a three-year pilot project in Chittenden County with the Vermont Community Loan Fund (VCLF). VCLF is a well-established organization with a strong history of supporting small businesses as well as housing development throughout Vermont, and a commitment to diversity, equity, and inclusion. With seed funding from Mascoma Bank, the new VCLF Business Navigator will focus on making connections within the community to provide information and practical support to emerging and nascent business owners in Burlington and the surrounding communities.